REG - Federal Bank Ltd The - 1st Quarter Results
________________________________________________________________________
SD/78/2021-22 26th July 2021
To
The London Stock Exchange
10 Paternoster Square
London
Dear Sir,
We enclose herewith the Un-Audited Standalone and Consolidated Financial Results of the Bank for the Quarter ended June 30,2021 which was approved at the Bank's Board of Directors meeting held on 23rd July 2021.
Kindly take the same on your record.
For The Federal Bank Limited
Samir P Rajdev
Company Secretary
Varma & Varma Borkar & Muzumdar
Chartered Accountants, Chartered Accountants
No.53/2600, Kerala Varma Tower 21/168, Anand Nagar Om Co-op
Off Kunjanbava Road, Hsg Society, Anand Nagar Lane
Vytilla, Off Nehru Road, Santacruz(East)
Kochi -682019 Mumbai - 400 055
Limited Review Report on unaudited standalone financial results of The Federal Bank Limited for the quarter ended 30th June 2021, pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015
The Board of Directors,
The Federal Bank Limited
1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of The Federal Bank Limited ('the Bank') for the quarter ended 30th June 2021 ('the Statement') attached herewith, being submitted by the Bank pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (as amended), except for the disclosures relating to Pillar 3 disclosure under Basel III Capital Regulations, as at 30th June 2021, including Leverage Ratio and Liquidity Coverage Ratio as have been disclosed on the Bank's website and in respect of which a link has been provided in the aforesaid Statement, which have not been reviewed by us.
2. The Statement is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors. The Statement has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard -25 'Interim Financial Reporting' ('AS-25'), prescribed under section 133 of the Companies Act, 2013, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines'), SEBI circular CIR/CFD/FAC/62/2016 dated 5th July, 2016 (hereinafter referred to as the 'SEBI Circular'), and other accounting principles generally accepted in India. Our responsibility is to issue a report on the Statement based on our review.
3. We conducted our review of the statement in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
4. Our review primarily is conducted on the basis of review of the books of account and records of the Bank. We have also relied on the information and explanations furnished to us by the Bank and the returns as considered necessary by us for the review.
5. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of Unaudited Standalone Financial Results prepared in accordance with applicable accounting standards, the RBI Guidelines, the SEBI circular and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) including the manner in which it is to be disclosed, or that it contains any material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the Reserve Bank of India in respect of income recognition, asset classification, provisioning and other related matters.
6. We draw attention to Note No.9 of the accompanying Statement of Unaudited Standalone Financial results, regarding the impact of COVID-19 pandemic on the Bank's operations and financial position, which will depend on various uncertain aspects including actions taken to mitigate the same and other regulatory measures.
Our conclusion on the Statement is not modified in respect of this matter.
7. The review of unaudited quarterly financial results for the quarter ended 30th June 2020 included in the Statement were carried out and reported by predecessor auditors who have expressed unmodified conclusion vide review report dated 15th July 2020, whose report has been furnished to us and which has been relied upon by us for the purpose of our review of the Statement.
Our conclusion on the Statement is not modified in respect of this matter.
For Varma & Varma For Borkar & Muzumdar
Chartered Accountants Chartered Accountants
FRN:004532S FRN:101569W
Vijay Narayan Govind Kaushal Muzumdar
Partner Partner
M. No. 203094 M. No. 100938
UDIN: 21203094AAAABR5586 UDIN: 21100938AAAABD3599
Kochi-19 Mumbai-55
23rd July 2021 23rd July 2021
Varma & Varma Borkar & Muzumdar
Chartered Accountants, Chartered Accountants
No.53/2600, Kerala Varma Tower 21/168, Anand Nagar Om Co-op
Off Kunjanbava Road, Hsg Society, Anand Nagar Lane
Vytilla, Off Nehru Road, Santacruz(East)
Kochi -682019 Mumbai - 400 055
Limited Review Report on unaudited consolidated financial results of The Federal Bank Limited for the quarter ended 30th June 2021, pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.
The Board of Directors,
The Federal Bank Limited
1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of The Federal Bank Limited (the 'Bank') and its Subsidiaries (the Bank and its subsidiaries together referred to as 'the Group') and its share of the net profit after tax of its Associates for the quarter 30th June 2021 (the 'Statement'), attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations'), except for the disclosures relating to consolidated Pillar 3 disclosure, as at 30th June 2021, including Leverage Ratio and Liquidity Coverage Ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the aforesaid Statement, which have not been reviewed by us.
2. The Statement is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors. The Statement has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard -25 'Interim Financial Reporting' ('AS-25'), prescribed under section 133 of the Companies Act, 2013, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines'), SEBI circular CIR/CFD/FAC/62/2016 dated 5th July, 2016 (hereinafter referred to as the 'SEBI Circular'), and other accounting principles generally accepted in India. Our responsibility is to issue a report on the Statement based on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, to the extent applicable.
4. Our review primarily is conducted on the basis of review of the books of account and records of the Bank. We have also relied on the information and explanations furnished to us by the Bank and the returns as considered necessary by us for the review.
5. This Statement includes the results of the following entities:
a. Fedbank Financial Services Limited (Subsidiary)
b. Federal Operations and Services Limited (Subsidiary)
c. Ageas Federal Life Insurance Company Limited (Associate)
d. Equirus Capital Private Limited (Associate)
6. Based on our review conducted and procedures performed as stated in Paragraphs 3 and 4 above and based on the consideration of the review reports of other auditors referred to in Paragraphs 7 and 8 below, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with applicable accounting standards, the RBI Guidelines, the SEBI circular and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) including the manner in which it is to be disclosed, except for the disclosures relating to consolidated Pillar 3 disclosure, as at 30th June 2021, including Leverage Ratio and Liquidity Coverage Ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the aforesaid Statement, which have not been reviewed by us, or that it contains any material misstatement.
7. The statement of unaudited consolidated financial results includes the interim financial statements / financial information/ financial results of the two subsidiaries whose unaudited financial results reflect total revenues of Rs 19,738 Lakhs and Rs 831.22 Lakhs and total net profit after tax of Rs 1,475 Lakhs and Rs 56.60 Lakhs for the quarter ended 30th June 2021, as considered in the unaudited consolidated financial results. These interim financial statements/financial information/ financial results have been reviewed by one of the Joint auditors of the Bank, whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on their reports and the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
8. The statement of unaudited consolidated financial results includes the Group's share of net profit after tax of Rs 239.42 Lakhs for the quarter ended 30th June 2021, as considered in the unaudited consolidated financial results in respect of one associate whose interim financial results have not been reviewed by us. These interim financial results have been reviewed by another auditor whose report has been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the said associate, is based solely on the report of the other auditor and the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
9. The statement of unaudited consolidated financial results also includes the Group's share of net profit after tax of Rs 264.32 lakhs for the quarter ended 30th June 2021, as considered in the unaudited consolidated financial results in respect of one associate, based on their interim financial results which have not been reviewed/audited. According to the information and explanations given to us by the Management, these interim financial statements /financial information /financial results are not material to the Group.
Our conclusion on the Statement is not modified in respect of this matter.
10. We draw attention to Note No.10 of the accompanying Statement, regarding the impact of COVID-19 pandemic on the Bank's operations and financial position, which will depend on various uncertain aspects including actions taken to mitigate the same and other regulatory measures.
Our conclusion on the Statement is not modified in respect of this matter.
11. The review of unaudited consolidated financial results for the quarter ended 30th June 2020 included in the Statement were carried out and reported by predecessor auditors who have expressed unmodified conclusion vide review reports dated 15th July 2020, whose report has been furnished to us and which has been relied upon by us for the purpose of our review of the Statement.
Our conclusion on the Statement is not modified in respect of this matter.
For Varma & Varma For Borkar & Muzumdar
Chartered Accountants Chartered Accountants
FRN:004532S FRN:101569W
Vijay Narayan Govind Kaushal Muzumdar
Partner Partner
M. No. 203094 M. No. 100938
UDIN: 21203094AAAABS5459 UDIN: 21100938AAAABE7149
Kochi-19 Mumbai-55
23rd July 2021 23rd July 2021
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021
(` in Lakhs)
Particulars
Quarter ended
30.06.2021
31.03.2021
30.06.2020
31.03.2021
Unaudited
Audited
(Refer Note 12 below)Unaudited
Audited
1. Interest earned (a)+(b)+(c)+(d)
3,35,571
3,36,634
3,44,415
13,75,791
(a)
Interest/discount on advances/bills
2,67,112
2,65,844
2,70,598
10,79,512
(b)
Income on investments
59,059
57,669
60,612
2,34,894
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
3,662
6,620
7,067
36,817
(d)
Others
5,738
6,501
6,138
24,568
2. Other income
65,015
46,537
48,837
1,94,491
3. TOTAL INCOME (1+2)
4,00,586
3,83,171
3,93,252
15,70,282
4. Interest expended
1,93,728
1,94,596
2,14,771
8,22,420
5. Operating expenses (i)+(ii)
93,340
1,00,066
85,243
3,69,172
(i)
Employees cost
52,830
52,523
49,585
2,03,418
(ii)
Other operating expenses
40,510
47,543
35,658
1,65,754
6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)2,87,068
2,94,662
3,00,014
11,91,592
7. OPERATING PROFIT (3-6)
(Profit before provisions and contingencies)1,13,518
88,509
93,238
3,78,690
8. Provisions (other than tax) and contingencies
64,183
24,233
39,462
1,64,963
9. Exceptional items
-
-
-
-
10. Profit from Ordinary Activities before tax
(7-8-9)49,335
64,276
53,776
2,13,727
11. Tax expense
12,606
16,495
13,699
54,697
12. Net Profit from Ordinary Activities after tax (10-11)
36,729
47,781
40,077
1,59,030
13. Extraordinary items (net of tax expense)
-
-
-
-
14. Net Profit for the period (12-13)
36,729
47,781
40,077
1,59,030
15. Paid-up Equity Share Capital
(Face value ` 2/- per Equity Share)39,926
39,923
39,875
39,923
16. Reserves excluding Revaluation Reserve
15,71,937
17. Analytical Ratios
(i)
Percentage of shares held by Government of India
NIL
NIL
NIL
NIL
(ii)
Capital Adequacy ratio (%)
Under Basel III
14.64
14.62
14.17
14.62
(iii)
Earnings per Share (EPS) (in `)
(a) Basic EPS (before and after extra ordinary items)
1.84*
2.39*
2.01*
7.97
(b) Diluted EPS (before and after extra ordinary items)
1.83*
2.38*
2.01*
7.94
(iv)
NPA Ratios
a) Gross NPA
4,64,933
4,60,239
3,65,559
4,60,239
b) Net NPA
1,59,324
1,56,928
1,47,746
1,56,928
c) % of Gross NPA
3.50
3.41
2.96
3.41
d) % of Net NPA
1.23
1.19
1.22
1.19
(v)
Return on Assets (%)
0.19*
0.25*
0.22*
0.85
* Not Annualised
Segment Information@
(` in Lakhs)
Particulars
Quarter ended
30.06.2021
31.03.2021
30.06.2020
31.03.2021
Unaudited
Audited
(Refer Note 12 below)Unaudited
Audited
Segment Revenue:
Treasury
79,785
57,592
93,782
2,73,996
Corporate/Wholesale Banking
1,12,056
1,03,540
1,15,894
4,56,152
Retail Banking
2,08,745
2,21,795
1,83,576
8,39,890
Other Banking operations
-
-
-
-
Unallocated
-
244
-
244
Total Revenue
4,00,586
3,83,171
3,93,252
15,70,282
Less: Inter Segment Revenue
-
-
-
-
Income from Operations
4,00,586
3,83,171
3,93,252
15,70,282
Segment Results (net of provisions):
Treasury
37,914
13,207
42,628
72,223
Corporate/Wholesale Banking
(2,535)
17,355
(8,149)
22,275
Retail Banking
13,956
33,470
19,299
1,18,985
Other Banking operations
-
-
-
-
Unallocated
-
244
(2)
244
Profit before tax
49,335
64,276
53,776
2,13,727
Segment Assets
Treasury
46,11,516
45,25,111
42,19,642
45,25,111
Corporate/Wholesale Banking
70,66,184
71,46,590
70,13,384
71,46,590
Retail Banking
77,40,698
78,13,657
65,29,646
78,13,657
Other Banking operations
-
-
-
-
Unallocated
5,85,373
6,51,381
8,19,363
6,51,381
Total
2,00,03,771
2,01,36,739
1,85,82,035
2,01,36,739
Segment Liabilities
Treasury
10,92,816
14,13,771
13,96,438
14,13,771
Corporate/Wholesale Banking
14,68,615
16,02,533
12,27,165
16,02,533
Retail Banking
1,55,94,228
1,53,06,693
1,42,27,797
1,53,06,693
Other Banking operations
-
-
-
-
Unallocated
1,99,260
2,01,381
2,38,354
2,01,381
Total
1,83,54,919
1,85,24,378
1,70,89,754
1,85,24,378
Capital employed:
(Segment Assets - Segment Liabilities)
Treasury
35,18,700
31,11,340
28,23,204
31,11,340
Corporate/Wholesale Banking
55,97,569
55,44,057
57,86,219
55,44,057
Retail Banking
(78,53,530)
(74,93,036)
(76,98,151)
(74,93,036)
Other Banking operations
-
-
-
-
Unallocated
3,86,113
4,50,000
5,81,009
4,50,000
Total
16,48,852
16,12,361
14,92,281
16,12,361
@
For the above segment reporting, the reportable segments are identified as Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the RBI guidelines.
Notes:
1
The above Standalone Unaudited Financial Results for the quarter ended June 30, 2021 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on July 23, 2021. These Results have been subjected to "Limited review" by the Statutory Central Auditors of the Bank and an unqualified review report has been issued.
2
The Bank has followed the same significant accounting policies in the preparation of the quarterly financial results as those followed in the annual financial statements for the year ended March 31, 2021.
3
The working results have been arrived at after considering provision for standard assets, including requirements for exposures to entities with Unhedged Foreign Currency Exposures, non-performing assets (NPAs), depreciation on investments, income-tax and other usual and necessary provisions.
4
Other income includes fees earned from providing services to customers, commission from non-fund-based banking activities, earnings from foreign exchange and derivative transactions, selling of third-party products, profit on sale of investments (net), recoveries from advances written off etc.
5
The Capital Adequacy Ratio is computed on the basis of RBI guidelines applicable on the relevant reporting dates and the ratio for the corresponding previous period is not adjusted to consider the impact of subsequent changes if any, in the guidelines.
6
The Business operations of the Bank are largely concentrated in India and for the purpose of Segment reporting, the bank is considered to operate only in domestic segment, though the bank has its operations in International Finance Service Centre (IFSC) Banking Unit in Gujarat International Finance Tec-city (GIFT). The business conducted from the same is considered as part of Indian operations.
7
During the quarter ended June 30, 2021, the Bank has allotted 130,990 equity shares of ` 2 each, pursuant to the exercise of stock options by employees.
8
In accordance with RBI Circular DBR.No.BP.BC.1/21.06.201/2015-16 on Basel III Capital Regulations dated July 01, 2015 and RBI Circular DBR.No.BP.BC.80/21.06.201/2014-15 dated March 31, 2015 - 'Prudential Guidelines on Capital Adequacy and Liquidity Standards - Amendments', Banks are required to make Pillar 3 disclosure requirements including Leverage Ratio disclosure requirements that are to be made along with the publication of Financial Results. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Statutory Central Auditors of the Bank.
9
On account of uncertainties arising from the COVID-19 pandemic across the world and in India, including the 'second wave' which has resulted in imposition of renewed restrictions in various parts of the country, the extent to which the same will impact the Bank's operations and financial position in future will depend on various aspects including actions taken to mitigate its impact and other regulatory measures. The Bank's capital and liquidity position is strong and would continue to be the focus area for the Bank during this period. The extent to which the COVID-19 pandemic will continue to impact the Bank's results will depend on the future developments related to the situation, which are highly uncertain, as well as the outcomes of the actions to contain the same.
10
Details of resolution plan implemented under the Resolution Framework for COVID-19-related Stress as per RBI circular dated August 6, 2020 are given below.
(` in lakhs except number of accounts)
Type of borrower
(A) Number of accounts where resolution plan has been implemented under this window
(B) exposure to accounts mentioned at (A) before implementation of the plan
(C) Of (B), aggregate amount of debt that was converted into other securities
(D) Additional funding sanctioned, if any, including between invocation of the plan and implementation
(E) Increase in provisions on account of the implementation of the resolution plan
Personal Loans
4,025
93,514.99
-
-
9,351.50
Corporate persons
7
14,180.77
-
90.65
1,427.14
Of which, MSMEs
-
-
-
-
-
Others
92
3,951.86
-
-
395.19
Total
4,124
1,11,647.62
-
90.65
11,173.83
11
In accordance with the RBI Cir. No. DOR.STR.REC.11/21.04.048/2021-22 dated May 05, 2021 on "Resolution Framework - 2.0: Resolution of Covid - 19 related stress of Individuals and Small Business", the number of borrower accounts where modifications were sanctioned and implemented and the aggregate exposure to such borrowers are as under
(` in lakhs except number of accounts)
No. of Accounts
13
Aggregate Exposure as on June 30, 2021
600.67
12
The figures for the quarter ended March 31, 2021 are the balancing figures between audited figures in respect of the financial year 2020-21 and the published year to date figures upto December 31, 2020, which were subjected to limited review.
13
The figures for the quarter ended June 30, 2020 were reviewed by predecessor statutory auditors.
14
Previous period's / year's figures have been regrouped / reclassified, where necessary to conform to current period's classification.
SHYAM SRINIVASAN
Kochi
MANAGING DIRECTOR & CEO
July 23, 2021
(DIN: 02274773)
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021
(` in Lakhs)
Particulars
Quarter ended
30.06.2021
31.03.2021
30.06.2020
31.03.2021
Unaudited
Audited
(Refer Note 13 below)Unaudited
Audited
1. Interest earned (a)+(b)+(c)+(d)
3,52,498
3,51,586
3,57,211
14,31,408
(a)
Interest/discount on advances/bills
2,84,295
2,81,071
2,82,774
11,35,314
(b)
Income on investments
58,463
57,110
60,654
2,33,829
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
3,662
6,619
7,067
36,816
(d)
Others
6,078
6,786
6,716
25,449
2. Other income
62,279
48,057
48,331
1,95,786
3. TOTAL INCOME (1+2)
4,14,777
3,99,643
4,05,542
16,27,194
4. Interest expended
2,00,016
2,00,321
2,19,655
8,43,496
5. Operating expenses (i)+(ii)
98,955
1,06,484
89,595
3,89,867
(i)
Employees cost
56,990
56,200
52,656
2,17,202
(ii)
Other operating expenses
41,965
50,284
36,939
1,72,665
6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)2,98,971
3,06,805
3,09,250
12,33,363
7. OPERATING PROFIT (3-6)
(Profit before provisions and contingencies)1,15,806
92,838
96,292
3,93,831
8. Provisions (other than tax) and contingencies
67,100
25,563
40,935
1,72,975
9. Exceptional items
-
-
-
-
10. Profit from Ordinary Activities before tax
(7-8-9)48,706
67,275
55,357
2,20,856
11. Tax expense
13,150
17,250
14,199
56,136
12. Net Profit from Ordinary Activities after tax (10-11)
35,556
50,025
41,158
1,64,720
13. Extraordinary items (net of tax expense)
-
-
-
-
14. Net Profit for the period (12-13)
35,556
50,025
41,158
1,64,720
15. Minority interest
384
567
364
1,524
16. Share in Profit of Associates
504
2,666
156
3,237
17. Consolidated Net Profit of the group
(14-15+16)35,676
52,124
40,950
1,66,433
18. Paid-up Equity Share Capital
(Face value ` 2/- per Equity Share)39,926
39,923
39,875
39,923
19. Reserves excluding Revaluation Reserve
16,09,799
20. Analytical Ratios
(i)
Percentage of shares held by Government of India
NIL
NIL
NIL
NIL
(ii)
Capital Adequacy ratio (%)
Under Basel III
15.36
15.19
14.53
15.19
(iii)
Earnings per Share (EPS) (in `)
(a) Basic EPS (before and after extra ordinary items)
1.79*
2.61*
2.05*
8.34
(b) Diluted EPS (before and after extra ordinary items)
1.77*
2.59*
2.05*
8.31
(iv)
NPA Ratios
a) Gross NPA
4,79,318
4,64,639
3,71,207
4,64,639
b) Net NPA
1,71,242
1,60,471
1,52,566
1,60,471
c) % of Gross NPA
3.51
3.35
2.94
3.35
d) % of Net NPA
1.28
1.18
1.23
1.18
(v)
Return on Assets (%)
0.17*
0.26*
0.22*
0.86
* Not Annualised
Segment Information@
(` in Lakhs)
Particulars
Quarter ended
30.06.2021
31.03.2021
30.06.2020
31.03.2021
Unaudited
Audited
(Refer Note 13 below)Unaudited
Audited
Segment Revenue:
Treasury
76,597
57,114
93,782
2,73,135
Corporate/Wholesale Banking
1,10,684
1,02,437
1,14,942
4,51,907
Retail Banking
2,27,496
2,39,848
1,96,818
9,01,908
Other Banking operations
-
-
-
-
Unallocated
-
244
-
244
Total Revenue
4,14,777
3,99,643
4,05,542
16,27,194
Less: Inter Segment Revenue
-
-
-
-
Income from Operations
4,14,777
3,99,643
4,05,542
16,27,194
Segment Results (net of provisions):
Treasury
35,345
13,322
42,275
72,226
Corporate/Wholesale Banking
(2,737)
16,289
(8,038)
21,547
Retail Banking
16,098
37,420
21,122
1,26,839
Other Banking operations
-
-
-
-
Unallocated
-
244
(2)
244
Profit before tax
48,706
67,275
55,357
2,20,856
Segment Assets
Treasury
45,66,638
44,79,657
41,97,586
44,79,657
Corporate/Wholesale Banking
70,10,074
70,83,959
69,53,817
70,83,959
Retail Banking
82,15,751
82,82,563
68,94,109
82,82,563
Other Banking operations
-
-
-
-
Unallocated
5,85,205
6,50,474
8,19,363
6,50,474
Total
2,03,77,668
2,04,96,653
1,88,64,875
2,04,96,653
Segment Liabilities
Treasury
11,11,142
14,03,276
13,95,636
14,03,276
Corporate/Wholesale Banking
14,80,815
16,09,960
12,49,280
16,09,960
Retail Banking
1,58,73,983
1,56,11,703
1,44,39,516
1,56,11,703
Other Banking operations
-
-
-
-
Unallocated
1,98,806
1,99,818
2,38,354
1,99,818
Total
1,86,64,746
1,88,24,757
1,73,22,786
1,88,24,757
Capital employed:
(Segment Assets - Segment Liabilities)
Treasury
34,55,496
30,76,381
28,01,950
30,76,381
Corporate/Wholesale Banking
55,29,259
54,73,999
57,04,537
54,73,999
Retail Banking
(76,58,232)
(73,29,140)
(75,45,407)
(73,29,140)
Other Banking operations
-
-
-
-
Unallocated
3,86,399
4,50,656
5,81,009
4,50,656
Total
17,12,922
16,71,896
15,42,089
16,71,896
@
For the above segment reporting, the reportable segments are identified as Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the RBI guidelines.
Notes:
1
The above Consolidated Unaudited Financial Results for the quarter ended June 30, 2021 were reviewed by the Audit Committee and subsequently taken on record and approved by the Board of Directors at its meeting held on July 23, 2021. These Results have been subjected to "Limited review" by the Statutory Central Auditors of the Bank and an unqualified review report has been issued.
2
The Consolidated Financial Results of the Group comprise the financial results of The Federal Bank Limited and its subsidiaries viz. Fedbank Financial Services Limited & Federal Operations and Services Limited and its associates viz. Ageas Federal Life Insurance Company Limited & Equirus Capital Private Limited.
3
There has been no material change in the accounting policies adopted during the quarter ended June 30, 2021 as compared to those followed for the year ended March 31, 2021.
4
The working results have been arrived at after considering provision for standard assets, including requirements for exposures to entities with Unhedged Foreign Currency Exposures, non-performing assets (NPAs), depreciation on investments, income-tax and other usual and necessary provisions.
5
Other income includes fees earned from providing services to customers, commission from non-fund-based banking activities, earnings from foreign exchange and derivative transactions, selling of third-party products, profit on sale of investments (net), recoveries from advances written off etc.
6
The Capital Adequacy Ratio is computed on the basis of RBI guidelines applicable on the relevant reporting dates and the ratio for the corresponding previous period is not adjusted to consider the impact of subsequent changes if any, in the guidelines.
7
The Business operations of the Bank are largely concentrated in India and for the purpose of Segment reporting, the bank is considered to operate only in domestic segment, though the bank has its operations in International Finance Service Centre (IFSC) Banking Unit in Gujarat International Finance Tec-city (GIFT). The business conducted from the same is considered as a part of Indian operations.
8
During the quarter ended June 30, 2021, the Bank has allotted 130,990 equity shares of ` 2 each, pursuant to the exercise of stock options by employees.
9
In accordance with RBI Circular DBR.No.BP.BC.1/21.06.201/2015-16 on Basel III Capital Regulations dated July 01, 2015 and RBI Circular DBR.No.BP.BC.80/21.06.201/2014-15 dated March 31, 2015 - 'Prudential Guidelines on Capital Adequacy and Liquidity Standards - Amendments', Banks are required to make Pillar 3 disclosure requirements including Leverage Ratio disclosure requirements that are to be made along with the publication of Financial Results. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Statutory Central Auditors of the Bank.
10
On account of uncertainties arising from the COVID-19 pandemic across the world and in India, including the 'second wave' which has resulted in imposition of renewed restrictions in various parts of the country, the extent to which the same will impact the Bank's operations and financial position in future will depend on various aspects including actions taken to mitigate its impact and other regulatory measures. The Bank's capital and liquidity position is strong and would continue to be the focus area for the Bank during this period. The extent to which the COVID-19 pandemic will continue to impact the Bank's results will depend on the future developments related to the situation, which are highly uncertain, as well as the outcomes of the actions to contain the same.
11
Details of resolution plan implemented under the Resolution Framework for COVID-19-related Stress as per RBI circular dated August 6, 2020 are given below.
(` in lakhs except number of accounts)
Type of borrower
(A) Number of accounts where resolution plan has been implemented under this window
(B) exposure to accounts mentioned at (A) before implementation of the plan
(C) Of (B), aggregate amount of debt that was converted into other securities
(D) Additional funding sanctioned, if any, including between invocation of the plan and implementation
(E) Increase in provisions on account of the implementation of the resolution plan
Personal Loans
4,025
93,514.99
-
-
9,351.50
Corporate persons
7
14,180.77
-
90.65
1,427.14
Of which, MSMEs
-
-
-
-
-
Others
92
3,951.86
-
-
395.19
Total
4,124
1,11,647.62
-
90.65
11,173.83
12
In accordance with the RBI Cir. No. DOR.STR.REC.11/21.04.048/2021-22 dated May 05, 2021 on "Resolution Framework - 2.0: Resolution of Covid - 19 related stress of Individuals and Small Business", the number of borrower accounts where modifications were sanctioned and implemented and the aggregate exposure to such borrowers are as under
(` in lakhs except number of accounts)
No. of Accounts
13
Aggregate Exposure as on June 30, 2021
600.67
13
The figures for the quarter ended March 31, 2021 are the balancing figures between audited figures in respect of the financial year 2020-21 and the published year to date figures upto December 31, 2020, which were subjected to limited review.
14
The figures for the quarter ended June 30, 2020 were reviewed by predecessor statutory auditors.
15
Previous period's / year's figures have been regrouped / reclassified, where necessary to conform to current period's classification.
SHYAM SRINIVASAN
Kochi
MANAGING DIRECTOR & CEO
July 23, 2021
(DIN: 02274773)
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